- accounting equation, the
*****Assets = liabilities +*****capital. Under the conventions of*****double entry bookkeeping, each accounting transaction has at least one*****debit entry and at least one*****credit entry of equal value. At any moment, the mathematical integrity of bookkeeping can be established by reference to the accuracy of the accounting (or*****balance sheet) equation. In the balance sheet, assets are recorded through debit entries, and liabilities and capital (or*****equity) through credit entries. While the accounting equation shows that a balance sheet balances, it does not indicate whether individual transactions have been booked to the appropriate*****accounts.

*Auditor's dictionary.
2014.*

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